toronto home prices

Only 20 per cent of Toronto families can afford an average house

The cost of having a home went down ever-so-slightly across Canada in June, according to the RBC Economic Research's latest housing trends and affordability report, but don't get excited if you live in a large urban market.

"The Canada-wide measure dipped by 0.3 percentage points to 51.4% in the first quarter of 2019 — still historically high," reads the report, released late last week. "Affordability is still dreadful in Vancouver, Toronto and Victoria."

You know times are tough when economists start using terms like "dreadful."

As of June 2019, only one in five families would actually be able to afford an average home in Toronto, according to RBC.

rbc economic research

Toronto remains one of Canada's most unaffordable markets for homes by far as of June 2019. Image via RBC Economic Research.

One household would need to spend some 66 per cent of what it pulls in just to cover ownership costs in Toronto right right now — more than double the Canada Mortgage and Housing Corporation's 30 per cent benchmark for "affordability."

"And this isn’t taking into account the mortgage stress test," reads the report. "Clearing a higher qualifying rate would drop even more families out of contention (to one in 13 in Vancouver, and one in seven in Toronto).

"Severe affordability issues remain a major obstacle for all but the wealthiest in Vancouver, Toronto and Victoria."

No guff, RBC. It's dreadful.

Lead photo by

blogTO


Latest Videos



Latest Videos


Join the conversation Load comments

Latest in Real Estate

Here's how much you need to earn to buy a home in Toronto right now

Breathtaking new medical school will completely transform Brampton landmark

Stunning new proposal unlike anything else in Toronto has people excited

Toronto landlord tries to rent out one-bedroom apartment to six people

Residents push back against luxury condo building coming to Toronto neighbourhood

Toronto house that feels like a fairy tale on sale for $5 million

Impressive community centre to be the jewel in Toronto neighbourhood's rebuild

This $15M Vaughan mansion is just one of many in what could be the next Bridle Path